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HomeMy WebLinkAboutP-144-81 10,°7 I I CORPORATION OF THE TOWN OF NEWCASTLE PLANNING AND DEVELOPMENT DEPARTMENT D.N. SMITH, M.C.I.P,, Director HAMPTON,ONTARIO LOB 1JO TEL.(416)263-2231 REPORT TO THE PLANNING AND DEVELOPMENT COMMITTEE MEETING OF SEPTEMBER 14, 1981. REPORT NO. : P-144-81 i I SUBJECT: The Ontario Neighbourhood Improvement Program (O.N.I.P.) i I RECOMMENDATION: It is respectfully recommended that: 1. This Report be received for information. BACKGROUND: On July 13, 1981 Council adopted the following resolutions in respect of the O.N.I.P. Program guidelines: Resolution #C-773-81 "THAT the correspondence from the Ministry of Housing dated June 29 1981 Open Letter to Municipalities that Requested ONIP Administration Outline, be received for information. Resolution #C-774-81 "THAT the correspondence be referred to the Director of Planning for a report back through the Planning and Development Committee." I - 2 - Background to the Program The Neighbourhood Improvement Program (N.I.P.) was intro- duced in 1974 and continued until March 31, 1978. During that period, N.I.P. was an independent program funded jointly by Federal, Provincial and Municipal Governments. In 1979 and 1980, a N.I.P. component was included in the now cancelled Community Services Contribution Program (C.S.C.P.) . The Federal Government announced the cancellation of the Community Services Contribution Program in November, 1980. In order to maintain the continuity of community improvement, the Government of Ontario announced on February 23, 1981, the introduction of the new Provincial/Municipal Program called the Ontario Neighbourhood Improvement Program (O.N.I.P.) . Under this Program, the cost sharing is divided equally (50/50) . Summary of Eligibility Criteria Sections IV and V of the "Program Administration Outline" describe the Municipal Eligibility Criteria (IV) and the Neighbourhood Eligibility Criteria (V) for the O.N.I.P Program. The following is a summary of the information contained in these sections. Section IV In Order for a Municipality to qualify under the O.N.I.P. Program, they must: - have an approved Official Plan; - have a property maintenance and standards by-law or agree to adopt one prior to redevelopment plan submission; - prepare and submit a redevelopment plan under Section 22(5) of the Planning Act; - involve residents in the project; - have the financial and administrative capacity to implement the plan; and - endeavour to prepare a comprehensive redevelopment strategy. 3 - Section V In order for a Neighbourhood to be considered eligible to participate in O.N.I.P, it must - have at least 25% of its housing stock in need of rehabilitation; - have a deficiency in Municipal and Social-Recreational facilities; - be composed of households that have an average income lower than the Provicial average or lower than the average of the entire Municipality.* - be a stable residential area. Eligible Cost Summary - Maximum of 15% of total project costs may be spent on Administration; - Not less than 20% of total project costs may be spent on either "social-recreational" or "municipal" improvements; - Funds can only be used to improve lands which are municipally owned or where a Municipality has a long- term use agreement acceptable to the Ministry of Housing. COMMENT: The eligibility criteria for the O.N.I.P. Program suggests i that this Program is consistentwith the recent Provincial Government approaches to funding in most assistance areas. In other words, if a Municipality wishes to acquire Provincial assistance, they must be pre- pared to make a substantial commitment of their own and they must demon- strate how each component or each "project" fits into an overall scheme * Without detailed information on household incomes, it is difficult to determine which neighbourhoold areas would be considered eligible. It is reasonable to assume, however, that some hamlets and some portions of the Urban Areas would qualify, and some would not. - 4 - which is acceptable to the Province. Before an application for funding under the O.N.I.P. Program is seriously considered, the Town should recognize the overall commitment required in terms of establishing comprehensive redevelopment policies, in terms of the administrative and implementation duties, and in terms of the financial obligations under the cost sharing breakdown. Respectfully submitted, FA:lb D. N. Smith, M.C.I.P. August 4, 1981 Director of Planning A Ministry of Housing Ontario IMPROVEMENT PROGRAM.- ADMINISTRATION OUTLINE i Community Renewal ario Renews Branch June, 1981 i TABLE OF CONTENTS (I) INTRODUCTION (II) BACKGROUND (III) PROGRAM OBJECTIVES (IV) MUNICIPAL ELIGIBILITY CRITERIA i (V) NEIGHBOURHOOD ELIGIBILITY CRITERIA (VI) LIST OF ELIGIBLE ITEMS (VII) FUNDING PROCEDURES (VIII) IMPLEMENTATION PROCESS APPENDICES (A) APPLICATION FORM (B) LEGISLATIVE AUTHORITY (B) (i) REDEVELOPMENT AREA DESIGNATION REDEVELOPMENT PLAN ADOPTION PROVINCIAL/MUNICIPAL AGREEMENT I E (I) INTRODUCTION The purpose of this document is to provide a general outline of the Ontario Neighbourhood Improvement Program (ONIP) and the process, implementation In addition to this document, municipalities which have been allocated funding will receive copies of the Provincial/Munici a1 Agreement, Claim pro_gresReport Forms. Municipal requests for the allocation of funds for the fiscal year 81/82 must be received by ` the Community Renewal Branch of the Ministry no later than September 30, 1981. Two application forms are included in this outline. Municipalities interested in apppplying the Community u forms, return andretai c nthe other for their files. Extra application forms may be obtained from the Community Renewal Branch. Municipal requests for the allocation of funds for the fiscal year 82/83 must also be received by the Community Renewal Branch of the Ministry no later than September 30, 1981. t i i (II) BACKGROUND The Neighbourhood Improvement Program (NIP) was introduced in 1974 and continued until March 31, 1978. During that period, NIP was an independent program funded jointly by federal, provincial and municipal governments. In 1979 and 1980, a NIP component was included in the now cancelled Community Services Contribution Program (CSCP) . The federal government announced the cancellation of the Community Services Contribution Program in November 1980. In order to maintain the continuity of community improvement, the Government of Ontario announced on February 23, 1981, the introduction of the new provincial/municipal program called the Ontario Neighbourhood Improvement Program (ONIP). Under this program, the cost sharing is divided equally (50/50) . Since municipal demand may exceed the provincial annual allocation, provincial funds will be allocated to municipalities on the basis of relative need and merit. I I VIII) PROGRAM OBJECTIVES To encourage and assist municipalities in implementing a municipal improvement strategy. • To improve conditions in older deteriorating but potentially stable and predominately residential neighbourhoods occupied by low and moderate income households. • To assist municipalities in improving municipal services, public utilities and social and recreational facilities in eligible residential neighbourhoods. • To encourage investment in the rehabilitation of existing housing stock, and new infill development by private and/or socially assisted housing. • To encourage energy conservation through energy efficient land use. I I I ('IV) MUNICIPAL ELIGIBILITY CRITERIA To be eligible for financial assistance under the Ontario Neighbourhood Improvement Program, a municipality must comply with the following criteria:- The municipality must: ® Have a neighbourhood which complies with the ` hr neighbourhood eligibility criteria. Have an approved official plan in effect. ,i Have already adopted a property maintenance standards by-law either pursuant to Section 36 of The Planning Act or under a private bill. If there is no by-law in effect, the municipality must have a policy statement pertaining to housing conditions in the approved official plan and auree to develop and adopt a property standards by-law prior to 'the submission of the \\ redevelopment-plan--to the­Minister.� Thie'by=Law f must be acceptable to the Ministry. / Undertake to involve the residents of the neighbourhood during the preparation of the redevelopment plan. have the financial and administrative capability to implement the redevelopment plan. Be able to develop and submit a redev.0lopment plan under Section 22(5) of The Planning Act, within six months of- the 'date of allocation of provincial funding. The plan must be implemented within four years of the date of allocation. in addition to the eligibility criteria outlined above, a municipality must endeavour to develop A, and adopt a municipalmproveirie�tti"strafe Effective April 1 198 municipal improvement strategy is going Co be a pre-requisite under the Ontario Neighbourhood 'improvement- Program (ONIP) and any new provincial program of community improvement. Notwithstanding the requirement under the Ontario Neighbourhood Improvement Program and the likely stipulation under the proposed new Planning Act, community improvements, even with municipal funding alone, must be planned comprehensively to ensure optimum results. In other words, prior to the initiation of any specific improvement project or projects by the municipality, there should be in place an overall municipal improvement strategy as part of the comprehensive planning process. Although the actual content of a municipal improvement strategy would vary substantially from one municipality to another, it would normally contain the following:- i (a) Identification of the areas in need of improvement. I (b) Doscription of the kind of defi.ci.encios in each improvement urea e. el;i�ti �9e°quate street patterns, poor municipal mainten- ance of streets and undergound services, lack of sufficient open spaces, i.nadequare or poorly located schools, inadequate shopping facilities, poor public trans- portation, poor maintenance of housing, flight of business enterprise to the suburbs, physical dilapidation of structures and vacancies in stores and offices, reduction in property assessment and tax revenue etc. (c) Listing of the type of improvements needed in each improvement area- (d) Setting out of priorities and__t.,mjag for the implementation among the various improvement areas. (e) Estimates of cost-s for the improvements conteinplated for each area. (f) Likely sources of-.fun-d ip�g for the improvements.'`- (g) Policies and controls for preventina_the deterioration of areas not presently in need--a-`-i�ttpYovement. The Community Renewal Branch will also be publishing guidelines to assist municipalities in the pre- paration of a municipal improvement strategy. i I i i I M NEIGHBOURHOOD ELIGIBILITY CRITERIA "Neighbourhood" for the purposes of ONIP, means an area defined by boundaries relating to existing geographic, social, physical and functional features. A municipality with a population of less than 5,000 can be designated in its entirety provided that the neighbourhood eligibility criteria are fulfilled. The neighbourhood eligibility criteria are as follows:- 0 At least 25% of the housing stock is in need of rehabilitation. There is a deterioration or deficiency in one or more of the following municipal services: a) sewer and water mains b) roads and streets c) curbs and sidewalks d) street lighting and utilities I There is a deterioration of or deficiency in one or more of the following recreational and social facilities: i a) public indoor/outdoor recreational i facilities b) public open space c) public social facilities such as community centres, libraries, clinics i ® The area is composed of P predominately low and moderate income households. The average household income of the ONIP area shall be below either the average provincial household income or the average household income of the municipality. The area is predominate) and will continue to be so as reflected linn the lofficial plan. The area is potentially stable in terms of residential land uses and densities; a) there are no indications of major con- struction or redevelopment plans for the area which will cause major changes. b) there are no conditions inside and outside the area which will continue to exert a negative influence upon the area, the adverse effects of which cannot be ameliorated by municipal action. NOTE: Information and statistics for the above may be derived from the most current available data: a) census information b) municipal records and reports c) windshield surveys ' I� (VI) ELIGIBLE ITEMS FOR CONTRIBUTION IN AN ONIP AREA (a) ADMINISTRATION: (Not to exceed 15% of total project cost) ' Includes all costs directly related to the preparation of the redevelopment plan, planning refinement, resident participation, and the municipal administration of the program. These costs include; Salaries of the municipal staff (full time and part time) engaged in the preparation of the redevelopment plan for the designated redevelop- ment area. Consultant fees for the preparation of the redevelopment plan. 'W Preparation of base maps, reproduction of maps and the acquisition of-census data. i Site office rental and other related costs. i Citizen participation including publication r of literature for distribution among residents and meeting costs such as hall rentals, G microphones,etc. ap Refinements to the redevelopment plan by municipal staff and/or consultants. i Salaries of municipal staff (full time and part time) engaged in the implementation of the redevelopment plan such as administration, acquisition, negotiations, reltYcation', legal and accounting. Attendance at provincial and Ministry sponsored seminars with prior approval of the Ministry. (b) SOCIAL, AND RECREATIONAL FACILITIES: These costs include: Capital costs of construction including the acquisition of land, demolition of buildings, the acquisition-and/or z improvement or repair Of existing buildings where they are to be j utilized as social/recreational facilities such as playgrounds, tot lots, parks (including ! park and playground equipment) , wading I swimming pools, ball diamonds, skating rinks, community centres, day care centres, clinics, drop-.in centres, libraries, senior citizen centres, youth centres and volunteer fire halls. Demolition, grading of land, soil tests and surveys related ,i.o social and recreational projects. Preparation of detailed architectural design plazas and working drawings relating to project fl implementation, iI{ Appraisal and legal fees. for the acquisition g_-- - f of properties. If 1 I jc) RELOCATION COSTS: These costs include: Moving costs and other related Compensation paid to individuals, families or businesses. (d) SERVICES AND UTILITIES: Preparation of detailed architectural design,--plans and engineering working drawings, and other necessary costs relating to project implementation. Construction of the new sewer and water mains and/or laterals. The-c-ontributions are to be� made to the works within and specifically intended to serve the redevelopment area. I 0 Repair of existing sewer and water mains within the designated redevelopment area. The abandonment of sewer and water mains within the designated redevelopment area. ® The abandonment costs and/or residual value of the hydro, gas and telephone lines within the redevelopment area. 0 The cost of constructing new and/.or paving and repairing of existing roads,_strEe­t-9 Zanes, "idewalks-;-boulevards; ciir6s�°i�utters� ca�cFi.__. i basins, street signs, street lighting, traffic light signals and garbage receptacles. The acquisition and/or demolition of the lands and/or buildings if needed for the construction of new roads, streets, lanes and sidewalks. (e) LAND FOR LOW AND MODERATE INCOME- HOUSING: These costs include: The acquisition and/or clearing of land to_ )ae_used for low and medium density housing-Tbr families of low and moderate income where: 1) the property consists of a residential building beyond the stage of economic rehabilitation, or, 2) the existing land use is inconsistent with the general character of the area, or, 3) the property adjacent to (1) or (2) is required in the land assembly of a suitable site for the housing. I It is recommended that when considering the purchase of such land there be prior consultation with the Ministry. (f) LAND FOR OTHER USES; These costs include: The acquisition and demolition of noxious uses where prior approval of stry has been obtained. NOTES ON ELIGIBLE COSTS: Up to a maximum of 15% of the total project cost (provincial and municipal contributions) may be used for administration and planning costs as previously outlined. i I Since the program is designed to assist � those residential neighbourhood which require improvements in both municipal a d social/ recreational services, °"n-o- less than._._._ 20% of the total project cost (t tal program cost minus adm-in-ist-ration°)--shAll be expended on either category. 0 All facilities, including social and recreational i and services and utilities,constructed or repaired under the program must be acceptable to the Ministry in terms of size and capacity`;°-"projects which exceed-th­e needs- of the neighbourhood will be considered for pro-rating in consultation with staff of the Community Renewal Branch. Funds can o nly be used to improve lands which are municipally'owned 'Or where" a municipality'has a written long term (10 year) use agreement which is acceptable to the Ministry. Funds cannot be used for the acquisition of land or buildings already owned by the municipality. It is not the intent of the program to service vacant land for development. �0 In the case. of land acquisition, the provincial contribution shall be on a net basis, (gross acquisition cost minus sa'Te price)-._' However, to avoid financial burden to the municipality, where the acquisition is necessary well in advance of the finalization of the sale of the land, the provincial contribution during the first three years of the implementation of the redevelopment plan may be on the basis of gross cost of acquisition. However, if the sale of the land is not finalized by the end of the third year, then the value of the land shall be appraised in accordance with the proposed re-use and the provincial contribution will be netted accordingly. The netting is necessary to enable the municipality to use pro- vincial funds for other approved improvements and to complete the redevelopment plan within the stipulated four years. Also, any surplus funds (rentals minus expenses) from an interim use of the lands and buildings can only be used in the ONIP area for the approved improvements. It is not--the-intent of the program to pay for the on-going maintenance and operating costs of any improved or new facilities. Provincial contribution will be limited to those eligible costs which have been incurred after the date of allocation. However, provincia ph'W6nt will be made"-After the redevelopment plan has been approved and the agreement has been executed, The list of eligible items may be expanded at the request of a municipality with the approval of the Minister. i I I I 'VII) FUNDING PROCEDURES (a) COST SHARING FORMULA: The province will contribute 50% of the costs of eligible items acceptable to the Ministry within the overall agreement amount. The municipality will be required to execute the agreement in the form available from the Ministry. (b) PAYMENT PROCEDURES: The provincial 50% share of the eligible costs within the overall agreement amount, will be paid _on the submission of a completed claim form with the necessary�-su-.__.___ Y pporting documentation after the expenditures have been incurred and pain—r—or initially by the municipality. The claim forms are available from the Community Renewal Branch. In order to ensure the completion of the projects within the stipulated four years, and to forecast an annual provincial cash flow, municipalities would be required to comply with the rate of expenditures, as outlined below: A minimum expenditure of 1/3rd of the gross approved cost by the end of the second year, up to 2/3rds by the end of the 3rd year, and the remaining 1/3rd by the end of the 4th year. The municipality could exceed the minimum. However, if the rate of expenditures__fdrlt-below`�he minimum stipulated, then the municipality would lose Pr ov_incial commitment in the amount equal to the difference bet:weern----thfe--actual and the minimum required. I • I) ,i i i �I �I (VI I I) TMPIFNDgrATION PTU S (� ' Ff" a1AR'P - O.N.I.P. tfi Municipality submits an application to the Minister for flue 1 allocation of hurling, Sew Appendix 'A' for a copy of the application, 2. Review and approval of municipal application by the Ministry. Minister's Jotter of approval forwarded to municipality. In consultation with Community Renewal Branch the municipality designates ]. a rcxdevelotnrnt ar(tia pursuant to Soction 22(2) of 'bhe Planning Act, See Appendix 'B'(i) . 4. Municipality forwards redevelopment area by-law to the Minister for approval. S. Approval of redevelopment area by-law by the Minister. In oonsultition with the Cc—a-mity Renewal Branch, the municipality prepares 6• and adopts a redevel obment plan by by-law pursuant to Section 22(5) of 71ue Planning Act. Fbr form and content of redevelopment plan see Appendix B, 7• SubrLit redevelopnx�nt plan with supporting documentation to the Minister for approval. 8. Approval of redevelopment plan and by-law'by Minister, 4. Minister forwards Provincial-nmlicipal Agrecre>nts to minicipality for execution. For loyislative provisions see Appendix 'B' (iii), Municipality executes agreements and forwards to the Ministry executed 10, copies along with supporting municipal by-law authorizing municipal officials. execution by 11. Provincial execution of agreement. A copy of executed agreement forwarded to nunicipality. 12• Canmence implementation of redevel 13• Submit claims and progress reports as required . N7PE: Steps 1 to 7 must be crnpletod within 6 months of notification of the allocation, i